As corporate controller for Apollo Shoes, you are tasked to find and explain any irregularities in the Apollo Shoes Case.
Resource: Apollo Shoes Casebook
Define the process you will use and address the following assessed classroom discussion questions:
What procedures will be used to collect accounting evidence? What sampling tools and techniques will be used for the examination? How will you use analytical and inferential tools to evaluate accounting evidence?
Submit your assignment to the facilitator.
Note. APA formatting is not required for this assignment. Use a title and reference page where appropriate. Consider using a checklist or flowchart to outline your process.
There are many irregularities that can arise within the different accounting departments at Apollo Shoes. An audit program will be designed according to the three cycles that will be outlined below. The first cycle that will be discussed is cash, then accounts payable and finally the payroll function. These cycles will be evaluated for substantive procedures for Apollo Shoes and detect irregularities for each section and an appropriate audit program will be designed for each department.
At Apollo Shoes irregularities or cash schemes, which could occur in the audit cycle of cash include fraudulent disbursement schemes and cash receipt schemes. Fraudulent disbursement schemes are those in which a distribution of funds is made from some company account in what appears to be a normal manner. Cash receipts schemes is the outright stealing of cash (Wells, 2005, p. 77).
Cash is the only account that is included in several cycles. The audit of cash balances is the last studied because the evidence accumulated for cash depends heavily on the results of the tests in other cycles. Auditors for Apollo Shoes will have to group the cash accounts into cycles to simplify the audit plan. The cash account appears in the cycles: finance and investment,...
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